Mumbai: Industry players have stressed the need for COVID liquidity bridge for providing guarantee to banks to give them comfort to restructure and extend loans to companies whose balance sheets have been impaired to coronavirus crisis.
The government also needs to plan for more support for migrant workers and the more vulnerable sections of the society.
On the other hand, realty sector is disappointed with the Finance Minister’s Rs 20.97 lakh crore package saying that announcements were inadequate in addressing the issues faced by the sector.
According to CARE, the break-up of the Rs 20.97 lakh crore shows that the RBI has a share of Rs 8 lakh crore while another Rs 1.9 akh crore was announced earlier before this grand package. Hence these five tranches provide for Rs 10 lakh crore.
The actual outflow from the Budget is not clear. It looks like that there could be Rs 75,000 -80000 crore which could go immediately while the tranche three package of Rs 1.5 lakh crore would be provided for over a period of time and not immediately as the targets are fairly long term and it is not clear if organizations like NABARD would be playing a role.
FICCI says, the government needs to provide Rs 10,000 crore in the first year towards COVID liquidity bridge for providing guarantee to banks to give them comfort to restructure and extend loans to companies whose balance sheets have been impaired to coronavirus crisis. It said even though it is a small amount it can have significant impact on companies and economy.